Sears Holdings Corp. (fka SHLDQ)

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BRK, when acquired by young Buffett cheaply in the early 1960s, was a declining textile business with strong financials and no long term debt. It wasn't nearly the basket case Sears is now. Buffett actually turned BRK's textile operations into a decent money-maker quickly by replacing management, selling off mill assets and trimming costs. Buffett has often said his purchase of Berkshire Hathaway Corp was one his worst mistakes-- a beginner's mistake-- even though it worked out later.

"Buffett’s first major move in re-deploying Berkshire’s equity came within two years of assuming control of Berkshire. In early 1967 Berkshire Hathaway purchased a pair of property insurance companies for $8.6 million million. A key characteristic of insurance companies is that the insurance premiums which are ultimately ear-marked to pay claims can meanwhile be invested."

http://www.investorsfriend.com/why-warren-buffett-bought-berkshire-hathaway/